August data indicated that overall operating conditions in the Irish construction sector continued to deteriorate during the month, despite a marginal increase in new business. Activity and employment both fell further, extending the current periods of decline to thirty-nine and forty months respectively. The Ulster Bank Construction Purchasing Managers’ Index (PMI) - - a seasonally adjusted index designed to track changes in total construction activity – remained below the no-change mark of 50.0 in August, signalling a further reduction of activity in the sector. However, the reading of 48.4 - - up from 45.0 in July - - indicated that the rate of contraction was the weakest in the current sequence (which began in June 2007). According to respondents, lower activity reflected continued uncertainty among clients.